American fast-food chain navigates years of declining store numbers

A long-established American fast-food chain, widely known for its footlong sub sandwiches, has recorded a consistent net loss of U.S. stores in recent years.

Since 2016, the fast food giant Subway has experienced a decline in its store numbers, including in 2024, when the business saw a loss of 631 outlets, according to QSR Magazine.

Additionally, the sandwich chain finished the 2024 year with 19,502 outlets, marking the first time the business has been below 20,000 in roughly 20 years, the magazine added.

The peak of this contraction occurred during the wake of the pandemic, with Subway witnessing closures in 2020 and 2021. While the pace of closures has since moderated (571 units lost in 2022 and 443 in 2023), significant losses were also evident in the years leading up to the pandemic, with 1,108 restaurants closing in 2018 and 996 in 2019.

With these closures, Subway also lost revenue. In 2024, the business generated $9.5 billion in system sales in the U.S., according to Restaurant Business. This is a 3.8% decrease from 2023.

In contrast to the U.S. market, Subway has demonstrated growth internationally. Over the past three years, the chain has expanded by more than 10,000 units, reaching a global total of nearly 37,000 restaurants. This positions Subway as the third-largest restaurant chain worldwide, behind McDonald’s and Starbucks.

“Subway achieved positive global net restaurant growth for the second consecutive year,” a Subway spokesperson told QSR. The spokesperson described a strategy of “optimizing” the footprint through a “strategic, data-driven approach focused on location, image, format and franchisee selection.”

Despite these closures, Subway wrote in a November 2024 press release that it has created a Fresh Forward 2.0 prototype to improve the restaurant’s ambiance with vibrant decor and “warmer wood tones.”

Fresh Forward 2.0 will improve Subway’s digital technology, presenting self-serve kiosks and order-ready screens.

This prototype has already been tested at some locations and has received positive feedback from guests and workers, the statement notes.

“Each restaurant design has represented a significant milestone for Subway, leading us to where we are today,” Global Chief Development Officer of Subway, Mike Kehoe, said in the release. “Fresh Forward 2.0 stands out as a design with the potential to make the greatest impact on our guests and franchisees as it brings our marketing, culinary and digital efforts to the forefront.”